Where should I invest $500 - 1000 for long term to earn most?

Question

I have not invested before. I am interested in starting small and without using a broker. Maybe just investing online. How/ where do I begin? What type of fund?

Answer 1

one of your responders mentioned T Rowe Price, Fidelity, and Vanguard. All 3 have good funds but they have a minimum investment a great deal more than you wish to begin with.

There are three options open to you with that beginning amount that I know of. One would be to select a mutual fund with a lower minimum infestment. I know of one family that has a $250 minimum with excellent funds. But it does have a 5.75% front end load. The funds also have an excellent track record. American Funds. They are on the internet. Check them out. Your second option is to open an account with an on line broker such as Scottrade. I believe they require only a $500 deposit to begin investing. Then buy either index funds or closed end funds. You can buy both just like stocks.

Here is a site where you can check both out to find ones that you like.

http://www.etfconnect.com/

Among index funds, stay with the general diversified equity funds to begin with such as IWN, small cap value fund or RSP an equal weight S&P 500 or ADRU large cap European stock fund. Something along those lines.

Among the closed end funds the same strategy applies, diversified equity funds. GAM, ZF

Personally, I would go with the index funds. They will not earn the most, but they will be relatively safe, as safe as equity investment can be. The tax consequences will be minimal and they should over the long term provide you with about a 9% to 10% annual return if history is any indication.

Because we may be heading into rough times economy wise, invest only 1/2 now and save the other 1/2 for about a year and invest it then. You may be very happy you did because you may then have the opportunity to buy the other 1/2 considerably cheaper than you bought this 1/2.

Good luck.

Answer 2

Go find a good growth mutual fund that has had a good 5 and 10 year track record. Ignore their one year record, i.e. don't look for the top flyer this last year because I promise you they won't be the top flyer over and over. You want long term. Here some place to look --
Some good companies, but not the only good companies:
Vanguard Funds
Fidelity
T Rowe Price
These 3 and other good mutual fund websites have great information, but are working to get you to invest with them. the are good companies, but understand their biase.

Good sources you can find on line:
http://www.smartmoney.com
http://finance.yahoo.com
http://www.daveramsey.com
http://www.crown.org
All of these 4 are not selling anything, they have great information on handling money and investing. They will give you information, but not tell you what to buy.

Good sources at the public library:
Kiplinger Personal Finance
Business Week
These are good business publications. Kiplinger is perfect for you, a person just starting out.

You don't need a broker you can contact the companies directly.

Here are some questions that you should answer:
Have you started a Roth IRA? Read up on them at the places above.
Do you have a 401(k) at work? Look into it and read up on them at the sources above.
You can find free, good help in a short amount of time. It will change your life.

Answer 3

You can invest online at websites like www.etrade.com and save vs. going through a broker. You can start with a good index fund that tracks the S&P 500. You'll beat 2 out of 3 managed funds this way. It's not as exciting as investing in other funds but it's more of a "sure thing."

Answer 4

You can open an account at Scottrade.com or Zecco.com - they are both good. My favorite investment right now is Energy Conversion Devices, symbol ENER. I personally own this stock. I think it is good long-term. Here is a link about the company:

http://www.top10traders.com/ViewPost.aspx?postID=197

This link is from http://www.top10traders.com - this is a free site that lets you see how your investments perform compared to other investors.

Answer 5

I have some problem before..but I had got the solutions.. it's easy and enjoying business.. I'm joining QuestNet, you can e-mail me at [e-mail] for more Information.